Comparative Study On Chinese And Foreign Commercial Banks In Investment Banking

In today’s world of rapid economic development, the environment of banking isconstantly changing, increasingly fierce competition for development of commercialbanks has posed a serious challenge, the gradual opening of the market makes thechanges in the international impact on China’s increasingly, the larger commercialbanks in the face of Western developed countries’ gradually enter the Chinese market,China’s commercial banks has brought to the increasingly intense competition. Succeedin this highly competitive environment to survive, we must learn from the successfulexperience of foreign commercial banks, on this basis, to find a new way out.In the case of the development of international commercial banks tend to mixedoperation, coupled with interest rate liberalization, commercial banks gradually lowerinterest income, while intermediate business income has become a major pillar ofcommercial bank income. Although the global financial crisis triggered by U.S.subprime mortgage crisis has hit the intermediate business of commercial banks, whileexposure the risk of mixed operation, but it can not stop the intermediate businessincome become a pillar of commercial banks income. In China, although most of thecommercial banks have started on intermediate business, but due to a late start,intermediate business of commercial banks mostly in the immature stage, how to betterdevelop intermediary business and successfully deal with a variety of mutations andcrisis become current problems to be solved in China’s commercial banks.Investment banking as an important part of intermediate business of commercialbanks, commercial banks increasing emphasis on its status. In recent years, the mainincome of China’s commercial banks is still the margin between deposits and loans.Because of low cost and high profit the margin between deposits and loans becomesmaller, making China’s commercial banks have begun to attach importance toinvestment banking, were implemented established investment banking department,product development, attract customers, expand business area, establish their ownmarketing network, expand their business and other measures, in order to improve theframework of the investment banking business, using its existing strengths, combinedwith China’s market environment, to develop investment banking.Through the comparison of Chinese and foreign commercial banks in investmentbanking, we analyzed the status of China’s commercial banks in investment banking,and revealing the disparity of Chinese and foreign commercial banks in investmentbanking, pointed out the problem of China’s commercial Bank in investment banking. Through learning the successful experience of commercial banks of western developedcountries, and combining the status of China’s commercial banks in investmentbanking, we give some suggestions to China’s commercial banks in investmentbanking.